What does the merchant want… the auction dollar or the parallel dollar?
What does the merchant want… the auction dollar or the parallel dollar?
7-28-2023
Ziyad Al Hashemi
The Governor of the Central Bank says that the bank offers the dollar through the auction window, but many merchants do not want to participate and buy the dollar from the platform, but prefer to obtain it in other incorrect ways, and this is what caused the increase in its exchange rate in the parallel market!
With this statement, the central governor confirms the fact that the role of the central bank ends with selling the dollar through the auction, and that a large part of the commercial movement does not want (auction dollars), but is looking to buy (parallel dollars) at a higher price to obtain flexibility and ease of disposal with it away from supervision!
This trend in the demand for the dollar through the markets may explain the state of (the scarcity of the dinar) and the state of stagnation taking place in the Iraqi markets today, which was caused by the seizure of merchants, speculators and smuggling networks of a large mass of the dinar for the purpose of purchasing the (parallel dollar) exclusively without allowing the circulation of this dinar in Economy.
This high and continuous demand for the (parallel dollar) will naturally lead to an increase in the level of speculation on it and the continuation of its prices, and this may prompt the parties participating in the auction window to transfer more of their dollar purchases to the parallel market to maximize profits as a result of the price differences between the auction dollar and the parallel dollar, and thus There will be a continuous increase in the mass of dollars destined to finance activities outside the scope of government and central bank oversight and control.
jaredaiq.net
